GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
119.38 USD
-0.2 (-0.17%)
119.38 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 55 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, GVA could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- GVA had positive earnings in the past year.
- GVA had a positive operating cash flow in the past year.
- GVA had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
- GVA has a Return On Assets (4.40%) which is in line with its industry peers.
- GVA has a Return On Equity of 15.79%. This is in the better half of the industry: GVA outperforms 61.82% of its industry peers.
- GVA has a Return On Invested Capital (6.20%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 15.97%.
- The last Return On Invested Capital (6.20%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 4.31%, GVA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- GVA's Profit Margin has improved in the last couple of years.
- GVA has a Operating Margin of 6.08%. This is comparable to the rest of the industry: GVA outperforms 54.55% of its industry peers.
- Looking at the Gross Margin, with a value of 16.39%, GVA is in line with its industry, outperforming 49.09% of the companies in the same industry.
- GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
- Compared to 1 year ago, GVA has less shares outstanding
- GVA has less shares outstanding than it did 5 years ago.
- GVA has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.62 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.62, GVA is in line with its industry, outperforming 50.91% of the companies in the same industry.
- GVA has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as GVA would need 3.86 years to pay back of all of its debts.
- GVA has a better Debt to FCF ratio (3.86) than 69.09% of its industry peers.
- A Debt/Equity ratio of 0.84 indicates that GVA is somewhat dependend on debt financing.
- GVA has a Debt to Equity ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.62
WACC9.95%
2.3 Liquidity
- GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of GVA (1.21) is comparable to the rest of the industry.
- A Quick Ratio of 1.12 indicates that GVA should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.12, GVA is doing worse than 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- GVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.71%, which is quite impressive.
- Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
- GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
- The Revenue has been growing slightly by 6.57% on average over the past years.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
- Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.48% on average per year.
- The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- GVA is valuated rather expensively with a Price/Earnings ratio of 20.34.
- Compared to the rest of the industry, the Price/Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 83.64% of the companies listed in the same industry.
- GVA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.06, GVA is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
- GVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than GVA, based on the Enterprise Value to EBITDA ratio.
- 90.91% of the companies in the same industry are more expensive than GVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 13.81 |
4.3 Compensation for Growth
- GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as GVA's earnings are expected to grow with 22.48% in the coming years.
PEG (NY)0.52
PEG (5Y)0.62
EPS Next 2Y24.52%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
- GVA has a yearly dividend return of 0.43%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.44, GVA pays a better dividend. On top of this GVA pays more dividend than 87.27% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
- The dividend of GVA decreases each year by -0.19%.
- GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
- GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
- GVA pays out 12.45% of its income as dividend. This is a sustainable payout ratio.
DP12.45%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
Can you provide the valuation status for GRANITE CONSTRUCTION INC?
ChartMill assigns a valuation rating of 6 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Fairly Valued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 20.34 and the Price/Book (PB) ratio is 4.51.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.